Fri, Mar 26, 2010 - Page 11 News List

Global Sweeteners TDRs gain 4.8% on Taipei debut

By Jason Tan  /  STAFF REPORTER

Global Sweeteners Holdings Ltd (大成糖業), one of China’s top corn sweetener makers, yesterday saw its shares of Taiwan Depositary Receipts (TDRs) close up 4.8 percent in one day on the Taiwan Stock Exchange.

Its shares closed at NT$16.25, up from the initial public offering price of NT$15.5.

Kong Zhanpeng (孔展鵬), Global Sweeteners chairman, said on Tuesday that funds raised from the IPO would be used to invest in the expansion of its cattle fattening business.

The company has facilities in Changchun, Jinzhou, Dalian and Shanghai, utilizing China’s advantage as the world’s second-largest corn producer to make sweeteners and cattle feed. China accounts for 20 percent of the world’s corn production, while the US is the largest producer.

Global Sweeteners intends to invest HK$310 million (US$40 million) in expanding facilities in Dalian and Jinzhou next year, up from this year’s HK$290 million, Kong said at the time.

The company is betting on a boom in sugar consumption in China. Average per capita consumption of sugar in China was 8kg in 2007, rising to 12kg last year, Kong said.

It will take another five to eight years before average consumption doubles to 24kg, he added.

Listed in Hong Kong in 2007, Global Sweeteners has a 15.4 percent share of the market for starch sweeteners in China. The company is now aiming to diversify its business portfolio by offering more agriculture-related offerings as such products are an important part of daily life for most consumers.

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